High staff turnover
In the hospitality industry, it’s very common for people to switch jobs on a regular basis. One study even found that 59% of hospitality staff had a plan to leave their current job within half a year! Many places rely on student labour, for example, which can lead to problems when the term ends or when they leave to study for exams. In many cases, workers from abroad who work on temporary visas while they travel also take up work in restaurant, bar and hotel jobs.
For a finance leader, this can quickly become time-consuming to manage. There’ll be higher on-boarding costs, too, as each new staff member will need to be introduced to the company and provided with training. Data-based accounting may well be the best possible solution here. By relying on smart software to integrate the staffing figures from HR with the cost data from finance, you’ll be able to match up information and locate exactly when and how your spending is surging.
Seasonal workers
Sometimes, you’ll have the same pool of workers – but only require them at certain times of the year. If you’re based in a destination which is popular with tourists, it’s likely that you’ll have peak periods and less busy periods. From the point of view of finance, this can throw up all kinds of problems. There are so many providers of staff-related services which insist that you subscribe the whole year round – even if that means a loss for you.
As a finance leader in hospitality, then, it may be worth renegotiating your contracts with any staff-related suppliers. Say you pay a fixed annual cost for staff insurance: by approaching an insurance provider who can give you a bespoke package which takes into account your sector’s changing needs across the course of the year, you may save cash.
How a particular hospitality business operates will be different depending on the location and the market position it occupies. But from a country pub to a top hotel, there’s one challenge faced by all – and that’s staff costs. From managing all the different types of workers you might have on board to ensure you’re not being ripped off during the low season, there’s a lot to think about. Luckily, solutions like data accounting software packages or perfecting the art of supplier negotiation can really pay off and ensure that staffing issues don’t start to consume your balance sheet.
Discover how The Access Group’s software packages can help you manage costs of all kinds within your hospitality business here.